There are many who tend to time their retirement and try to retire in such a manner that they reach a definite milestone like ‘complete 35 years on job’ or ‘saved $1million’ or ‘reached 65 years of age’. Little do they realise that more than reaching any milestone, one has to be psychologically and financially ready for a retirement. When you were tied up with deadlines, when you had to commute through a large distance and when you didn’t have time to check your pending work e-mails, all you may have been thinking about in your mind is the perfect time for retiring from work.

But how are you supposed to know which is the right time for retirement? Who will tell you about the most common signs? Well, we’re here to help you with the few signs that will prompt you about the best time to retire from your 10-5 cubicle and embrace a life of freedom.

Sign #1: You are debt free and you’ve repaid all your high interest debts

The financial professionals usually don’t agree on the merits of paying off their mortgage before they retire. For majority of the retirees, the emotional advantages of repaying their mortgage can outshine the fiscal benefits of staying in debt. Retirees can still reap benefit from mortgage-interest deduction and grow the nest egg by investing dollars on the money they would have utilized to pay off the principal. There is broad acceptance of the fact that people should first repay their high interest credit card debt before they take care of anything else. So, if you find yourself debt free, you can think of retiring.

Sign #2: You have too many activities to fill up your day

When you’re planning to retire, you know what you’re retiring from but are you sure about what you’re retiring to? You’ll require few activities to fill up your days and whatever plans you may have, they should have a definite purpose in your life. As long as you were employed, it gave you an identity and a status that you enjoyed but when you step away from your career, this can lead to an identity loss. If you want to combat these, you can watch out for opportunities like volunteering which can give you a sense of recognition and belonging with the organization. Also consider the impact of your retirement on your spouse as they might find it uncomfortable when the bread-earning member suddenly starts staying around all the time.

Sign #3: You’ve built a strong financial safe

There are few advisers who say that amalgamating a huge amount like $1.5 million is much less vital than deciding how much you’re going to spend on your retirement. Take into account your annual expenses and multiply the amount by 25. In case you spend $75,000 in an entire year, you will then need $1.88 million to live on; keeping mind you will live for 25 years of retirement. From the total amount, subtract what you get from pensions and Social Security and the remaining amount is what you would have to fund on your own.

Therefore, do you think you’ve faced the above mentioned 3 signs in your life? If you’ve repaid all your high interest debts but you still didn’t save enough to retire, wait for the right time and keep saving religiously.